Targeting Online Ads: Aim for the Bulls-eye or Focus on Hitting the Target?

Millward Brown's POV, March 2009

Among the significant and distinct attributes of online advertising is its ability to deliver relevant messages to specific targets. However, the range of available online targeting options is vast and becoming increasingly complex. How should advertisers choose among these alternatives to optimize their online ad effectiveness?

To reach the right person with the right message at the right time is the holy grail of advertising. Theoretically, it seems that the targeting capabilities of online advertising—which include demographic, contextual, and behavioral options—would make that goal consistently attainable. But in reality, the precision promised by online targeting cannot always be delivered on a scale that’s large enough for major advertisers. As a result, to obtain their desired levels of reach, advertisers sometimes adopt “mass-market” techniques such as homepage takeovers of major sites. These approaches, though not finely targeted, often offer cost savings that more than make up for some wasted reach.

What can advertisers realistically expect from online targeting, and how should they make their targeting decisions? Online targeting options are many and varied (see the Targeting Topography box on page 2), and the challenge of choosing among them is further complicated by the possibility of applying multiple targeting techniques in combination. To shed some light on what the various options have to offer for different brands and brand objectives, let’s consider some of the major targeting types in a little more detail.

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